MCX Stock Exchange (SX) has been granted a conditional extension of one more year to operate as a currency exchange by the Securities and Exchange Board of India (Sebi). However, the permission is subject to the ongoing case in the Bombay High Court, a MCX spokesperson said. The permission was supposedly given in public interest.
There was speculation in the markets that MCX SX would not get a extension for the third time to continue with operations in the currency segment.
According to Sebi, MCX SX was not a 'fit and proper person" to operate a exchange as it had failed to meet certain regulatory norms. The MCX SX promoters disputed this and dragged the regulator to court. The final court hearing is scheduled on September 16.
Recently, the initial public offer (IPO) of MCX got a go-ahead from the Sebi. While most of the leading stock and commodity exchanges are listed globally, MCX will become the first commodity exchange to be listed in India.
